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Suit filed against Broadwind Energy

Earlier in the week, an Atlanta-based law firm had issued a news release saying it was investigating Broadwind. The Friday news release states that purchasers of common stock between March 17, 2009, and Aug. 9, 2010, may be part of the lawsuit.

A shareholder class-action lawsuit has been filed against wind company Broadwind Energy, a law firm announced Friday.

In a news release, Robbins Geller Rudman & Dowd states that Broadwind allegedly "failed to disclose material adverse facts about the company's true financial condition, business and prospects."

Illinois-based Broadwind Energy operates a Tower Tech manufacturing facility in Abilene. The company also has a local Broadwind Services operation, at which wind-related maintenance and repairs take place along with the refurbishing of wind turbine gearboxes.

In 2010, there were 176 such lawsuits filed nationally, according to the Securities Class Action Clearinghouse at Stanford Law School.

Amar Gande, an assistant professor of finance at Southern Methodist University, told the Reporter-News that roughly 30 percent of such lawsuits are dismissed.

Earlier in the week, an Atlanta-based law firm had issued a news release saying it was investigating Broadwind.

The Friday news release states that purchasers of common stock between March 17, 2009, and Aug. 9, 2010, may be part of the lawsuit.

In the same release, the law firm alleges that during the... more [truncated due to possible copyright]  

A shareholder class-action lawsuit has been filed against wind company Broadwind Energy, a law firm announced Friday.

In a news release, Robbins Geller Rudman & Dowd states that Broadwind allegedly "failed to disclose material adverse facts about the company's true financial condition, business and prospects."

Illinois-based Broadwind Energy operates a Tower Tech manufacturing facility in Abilene. The company also has a local Broadwind Services operation, at which wind-related maintenance and repairs take place along with the refurbishing of wind turbine gearboxes.

In 2010, there were 176 such lawsuits filed nationally, according to the Securities Class Action Clearinghouse at Stanford Law School.

Amar Gande, an assistant professor of finance at Southern Methodist University, told the Reporter-News that roughly 30 percent of such lawsuits are dismissed.

Earlier in the week, an Atlanta-based law firm had issued a news release saying it was investigating Broadwind.

The Friday news release states that purchasers of common stock between March 17, 2009, and Aug. 9, 2010, may be part of the lawsuit.

In the same release, the law firm alleges that during the class-action time period, Broadwind "lacked a reasonable basis for their positive statements about the company and its prospects."

In deciding when to pursue a case, "many times there's a big share price drop," Gande told the Reporter-News. "Law firms look for this."

Broadwind share prices have plunged from above $12 in July 2009 to about $2 currently. The news release apparently did not concern traders, as the stock closed Friday at $2.15 per share, up 5 cents on the day.


Source: http://www.reporternews.com...

FEB 12 2011
http://www.windaction.org/posts/30022-suit-filed-against-broadwind-energy
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